Final Plan
Introduction
Accounting and finance always define somewhat different things in total because the applicability of the same could not be matched with any other thing. Accounting is the name of recording and interpreting the data from different standpoints and there are numerous things that come under the ambit of the same. On the other hand, finance is the name of utilizing the money and funds of the company at a place from where the likelihood of earning would be on a higher scale.
In a broad nutshell, both of these things are quite effective and important to watch. Industrial analysis always looks forward to analyze the things in a perfect and well organized manner. Industry analysis means to analyze the whole industry in which different companies relating to a single industry would be dominated, analyzed and count. Though there are number of industries currently found in the entire world and every industry has its own recognition and importance in a broad nutshell.
The main perspective of this assignment is to write a specific write up of the financial statement. It is required to make up our own financial statement including charts and all other things to demonstrate the thing in an effective and well organized manner. It is also important to bring ethical consideration in total for all of this practical work because it is essential for the same thing in total. In the first part, it is required to have the basic financial information of the person followed by the income statement and all other things. Information
All of the data which has been taken into consideration has been analyzed from different angles and the information of the same are mentioned below
Tax = 5% of the income
Utilities = 400$
Tuition fees = 600$
Groceries = 1500 $
Rent = 1000$
Telephone Expense = 400$
Insurance = 400$
Repair & maintenance = 200$
Asset Purchasing = 500$
Clothing & Other Expenses = 600$
Personal Finance
The savings in this scenario could be extremely effective and it is increasing year by year by regular percentage which is extremely important from this viewpoint in total. All the net saving of this particular scenario is in positive term which is again a perfect sign from the viewpoint of the individual because they have a sound and effective financial savings at the end of the day in their pocket in total. Each year, the rate of savings would increase considerably which is again a good sign from the viewpoint of the individual. Personal financial management people emphasize on the net savings as a whole because it is something extremely important from the viewpoint of the company which would certainly be effective in near future.
Start-Up
There are number of things which have been identified in this particular scenario in total and it could be easily found from the above mentioned things in total which is more than enough to analyze the effectiveness in total. The most part which have been allocated in the expense pertains to the rent of the house which is 1500 and proportionate to 30% of the total expenses in total. This particular thing needs to be decrease for the high amount of cash in hand in total. Tuition Fees and Other expenses have the similar amount of expenses tendency which is 12% in total.
Asset Allocation
Investment and finance are two important things from the viewpoint of an organization and individualism as well because both of these things are essential. The main perspective of this assignment is to have different stocks for the investment purpose in total. There are three different stocks have been selected for the same assignment and the name of the companies are, Pepsi Co, Starbucks and Microsoft.
The reason behind choosing all of these companies is that all of these companies are some of the industry leaders and main competitors which are increasing their financial belongings. All of these companies are high in revenues as well as in the net income. The Net Profit Margin (NPM) and Gross Profit Margin (GPM) of the selected companies are increasing year on year (YOY), which is the biggest rationale for choosing these ones in total. It is required to select have the stock analysis of all of these companies and then invest related amount in the shares of the company which would become economically prospective and perfect for the company as a whole. I have 100,000 $ of cash which I am intending to put in some of the major stocks of the world.
The current stock price of these three companies are mentioned below,
Pepsi Co – 84.46 $
Starbucks – 81.46 $
Microsoft – 38.13 $
Equal amount of investment should have been given in this particular provision in total. We are intending to invest 33% to Starbucks and Microsoft and 34% of the shares in Pepsi Co.
It is advised to use 10 days of trading to complete this thing
We would buy mentioned below share
390 Shares for Pepsi Co
405 Shares for Starbucks
892 for Microsoft
Profit by investing in all of these stocks are mentioned below
The equity has now become
= 100,000 + 675.35
= 100,675 $
The rate of return or Return on Investment (ROI) in this particular analysis is
= 100,675 – 100,000 / 100,000
ROI = 0.6735%
Now, if we sell the stocks after 10 days on the price level of
Pepsi Co = 92 per Share
Starbucks = 89 per Share
Microsoft = 43 per Share
Then the total equity and ROI would be like this
ROI = 110,281 – 100,000 / 100,000
ROI = 10.28%
I would earned net return on investment of 10.28%, by selling the shares on the prices mentioned above.
Cash Flow
Cash Flow analysis is one of the most important analytical provisions in total which has its own recognition and importance. It is analyzed that how much cash is in flow and how much is at outflow from the pocket of the individual. It is required to analyze the level of cash flow accordingly for an individual because the provision of the same could be extremely vital for a company indeed. The cash flow of the individual is mentioned below for 5 years.
Net cash savings of the person is zero because most of the things have been purchased over credit based things in total. Cash flow depends heavily upon the net income or net productivity extracted from the net cash balance in total. My savings and investment in the stocks would certainly help me in the life after retirement.
